Great to see you're getting this sorted out! Just one more thing to double-check when you meet with your tax preparer tomorrow - make sure they're looking at the correct carryover amount from last year. Sometimes the loss carryover amount on your prior year return might be different from your actual realized losses if you had other gains that year that already offset some of the losses. The carryover amount should be shown on Schedule D from your prior year return, usually on line 16. That's the exact amount available to offset this year's gains. If your preparer is working from a different number, that could explain some of the confusion. Also worth asking them to walk you through the actual calculation on Schedule D so you can see how they're applying the carryover. Sometimes seeing the math laid out makes it much clearer what's happening. Good luck with the meeting!

One more thing to consider - if you're working with a tax preparer who doesn't fully understand capital loss carryovers, you might want to bring some documentation to your meeting tomorrow. The IRS has a pretty clear explanation in Publication 550 (Investment Income and Expenses) that spells out exactly how capital losses can offset capital gains without the $3,000 limit. Also, make sure your preparer is using the correct Schedule D form for the current tax year. Sometimes software glitches or using outdated forms can cause confusion about how carryovers are applied. You should be able to see line by line how your $135k carryover loss is being applied against your $125k gain. If they still insist you can only use $3k, ask them to show you the specific tax code or IRS publication that supports that position. There isn't one, because capital losses can fully offset capital gains. The $3k limit only applies to excess losses against ordinary income like wages or interest.

Just a heads up since you're new to self-employment - don't forget you can deduct legitimate business expenses to lower your taxable income! Home office (if you have dedicated space), supplies, mileage for business travel, professional licenses, continuing education, health insurance premiums, etc. This can significantly reduce what you owe. Write down EVERYTHING and keep all receipts. I use a simple spreadsheet + a folder in Google Drive with photos of all receipts. My tax person loves me for being organized lol.

As someone who went through this exact transition last year, I completely understand your stress! The good news is that you're not automatically setting yourself up for an audit just by missing quarterly payments. Audits are typically triggered by other red flags like unreported income, excessive deductions, or inconsistent information across tax documents. That said, you definitely want to get current on your estimated taxes soon. Since you've made $57k so far, you're likely looking at owing around $8,000-$10,000 in self-employment tax alone (15.3% of your net earnings), plus regular income tax on top of that. My suggestion: calculate what you should have paid for the quarters you've missed and make a payment ASAP. The IRS actually has a pretty straightforward online tool for estimated tax payments. Even though you're between deadlines, paying now shows good faith and will minimize additional penalties. Also, start setting aside 25-30% of each payment you receive going forward - this saved me from scrambling at tax time. Your accountant should be helping you calculate exact amounts, so maybe push for a more detailed conversation about your specific situation rather than just "it'll be fine.

Don't forget to check if your daughter qualifies for the Child Tax Credit! There are special rules for children who are non-resident aliens. If she has an ITIN and meets the other tests, you might still qualify for the credit even if she lives abroad.

I went through this exact same situation a couple years ago! Here's what I learned that might help you: Since you're a resident alien and your wife can elect to be treated as one for tax purposes, you're on the right track with married filing jointly. For your daughter, even though she's a nonresident alien, you can still claim her as a dependent if she meets the qualifying child or qualifying relative tests. The key thing to know is that for qualifying children, they need to be US citizens, resident aliens, nationals, OR residents of Canada/Mexico. If your daughter doesn't fall into those categories, you might still qualify under the qualifying relative rules. You absolutely can get an ITIN for her using Form W-7. I'd recommend working with a Certifying Acceptance Agent if possible rather than mailing original documents - it's much safer and faster. One heads up though - while you can claim her as a dependent for the dependency exemption, she won't qualify for the Child Tax Credit since that requires US citizenship or resident alien status. But the dependency deduction itself can still provide significant tax savings. Make sure you have all her documentation ready (birth certificate, proof of relationship) and get any foreign documents certified and translated if needed. The whole process took about 10 weeks for us during non-peak season.

One thing nobody has mentioned yet is that regardless of which state you choose, you'll need to be aware of "foreign qualification" requirements. If you're "doing business" in a state other than where your LLC is formed, you technically need to register as a foreign entity there. The definition of "doing business" varies by state, but generally includes having employees, office space, or conducting in-person services in that state. As an expat with an online business, this probably won't affect you if you truly have no physical presence in any state. But something to keep in mind if your situation changes!

Great question! I went through this exact process about 18 months ago as an expat living in Germany. After a lot of research, I ended up choosing Delaware for my LLC, even though I had no prior connection there. Here's what I learned: Delaware has excellent legal precedent for business law, reasonable fees ($90 annual franchise tax for most small LLCs), and their Court of Chancery is specifically designed for business disputes. While states like Wyoming and Nevada get a lot of attention for zero state income tax, Delaware's legal framework is incredibly well-established. The key thing is that as an expat, you'll be paying federal taxes regardless of which state you choose, and since you're using FEIE, the state income tax differences matter less than they would for a US resident. What matters more is ease of maintenance, legal protections, and banking relationships. I used a registered agent service in Delaware for about $150/year and was able to open a business account with Chase online using my EIN and passport. The whole process took about 3 weeks from start to finish. One tip: make sure you understand the difference between your LLC's state of formation and where you'll actually owe taxes. As an expat with FEIE, your federal tax situation is more complex than the state choice.

Titles aside, make sure you're keeping your business and personal finances totally separate if you go the S Corp route. The IRS looks at S Corps more closely, especially small ones. You'll need a separate business bank account, keep good records, and be careful about how you categorize expenses. Just my two cents from someone who went through an audit last year after electing S Corp status for my LLC. The business card title wasn't a problem but they definitely scrutinized my salary vs distributions ratio carefully!

Great question! I went through this same decision process last year. You can definitely use "CEO" on your business cards and marketing materials - it's purely a business title and has zero impact on your tax status with the IRS. The key thing to remember is context matters. For internal business purposes (business cards, LinkedIn, website, etc.), use whatever title feels right - CEO, President, Founder, etc. But on official tax forms and state filings, you'll still need to use the proper LLC terminology like "Member" or "Managing Member" depending on your LLC structure. One thing I wish someone had told me earlier: if you're serious about the S Corp election, start planning for the payroll requirements now. You'll need to pay yourself a "reasonable salary" as an employee, which means setting up payroll, withholding taxes, and filing quarterly reports. It's more administrative work but can save significant money on self-employment taxes if your business is profitable enough. The title change is the easy part - it's all the operational changes that come with S Corp taxation that require more attention!